State Regulations Governing Investment Advisors And IAR's

Question 1

Under the USA what are the Exemptions from definition for state registered investment advisor?

Answer 1

1. No PoB and only institutional clients

2. No PoB and

Question 2

Under the federal rules what are the exclusions from definition for federally registered investment advisor?

Answer 2

1. Banks, Holding
2. LATE
3. B/D
4. RR
5. US Govt Sec Adv
6. Credit Agencies
7. Family

Question 3

Under federal rules what are the exemptions from definition for federally registered investment advisor?

Answer 3

1. Locally exempt
2. Insurance
3. Private Fund
4. Venture Cap
5. Foreign Private Investor

Question 4

Under the USA what are the exclusions from definition for state registered investment advisor?

Answer 4

1. IAR
2. BST
3. LATE
4. BD & Agents
5. Fed Cov Adv

Question 5

Any requests for materials from an IA must be met within _____ days.

Answer 5

7

Question 6

If an IA violates the net capital rule what may the administrator require from the IA?

Answer 6

A current balance sheet,
A client ledger,
A list of all client owned securities and non-segregated funds.

Question 7

An IA must notify the SEC of any material changes in its ADV within:

Answer 7

30 days

Question 8

Under the USA when do registrations expire on IA’s and IAR’s?

Answer 8

Dec 31st

Question 9

What is the difference between an exclusion and and an exemption?

Answer 9

Something is exempt from being regulated or it is being less regulated because it meets certain conditions.
Something is being excluded from being regulated by a specific law because it is being regulated elsewhere by a different law.

Question 10

Form ADV-E must be performed by _________ and filed within______ days after the completion of the audit

Answer 10

An independent accountant, 120

Question 11

According to the Investment Advisors Act of 1940 is an investment advisor required to provide a balance sheet with clients?

Answer 11

When the advisor requires a pre-payment of the fee that is greater than $1200. 6 months or more in advance for providing service.

Question 12

T or F: Under the USA an administrator who requires the posting of the surety bond may disallow the deposit of cash or securities instead of a bond.

Answer 12

False

Question 13

T or F: According to the USA and administrator may require federal covered advisers to give notice or no to spell in any state where they transact business with six more individual retail clients.

Answer 13

True

Question 14

Under what conditions me an investment visor borrow money from a customer even if they are family.

Answer 14

None, this is expressly prohibited

Question 15

Under NASAA, investment avisors must update their ADV filing made with the state within _____ days of _________ year end?

Answer 15

90, fiscal

Question 16

Whose responsibility is it to keep an actual copy of the order execution?

Answer 16

The broker-dealer

Question 17

What items must in order memorandum contain?

Answer 17

Person who rec the transaction
Person that placed the order;
Date of the order entry;
Name of the account for which the order was entered;
Name of the executing broker dealer or bank
Discretionary/Non